EVs & guardrails

[mschmit]

@MarkR

It is literally just the opposite of this. That’s because insurance companies are highly regulated and their profits almost always are roughly some percentage of claims paid. Reduced claims over the long term results in reduced profits. An insurance company with $100B in claims will have very roughly about twice as much profit as an insurance company with $50B in claims. If an insurance company has 100B in claims, and new safety features reduce their claims to 50B, their profit will follow (once the regulators set their new rate guidelines).

I find these stats a bit suspect. If one insurance company (with a well diversified customer base) has $100B in claims and another (equally diverse) company has $50B in claims it is probably because the company with fewer claims has about half as many customers. Correct?

Mike